IndiGo employees to return to work, LWP removed across departments

With effect from January 1, there will be no more leave without pay, but 5 to 25% pay cuts of senior staff will continue

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Ronojoy Dutta, CEO, IndiGo, in a letter to his employees, announced the decision to give paid leave to all employees from January 1, 2021 as the airline expects demand to pick up and revenue to improve soon.

IndiGo had earlier reduced the leave without pay (LWP) for employees, from 10 days per month to three days a month, in November. It had also laid off employees and as a result, at least 10 per cent of the staff lost their jobs as cost-cutting measures were adopted.

As selective domestic flights resumed in May, the number of passenger flights kept climbing as the months passed. In October, domestic air traffic jumped by 33.67 per cent and has been improving ever since.

IndiGo’s losses were higher in the second quarter, amounting to Rs 1,194.8 crore, against the loss of Rs 1,062 crore in the same quarter of the previous financial year. Seeing the fall in the number of flights taking off, these numbers are certainly heartening and much better than what was expected.

Currently, various airlines in India are permitted to operate at a maximum of 80 per cent of their pre-pandemic flight capacity. International flights continue to remain suspended since March 23, but under the Vande Bharat Mission, a few flights have been operating.

Though the situation is still quite shaky, Indigo is hopeful of a steady recovery in the first six months of 2021 and hopes that the Government will soon allow them to operate at full capacity.